Restaurant Franchisees Predict 2026 Will Be the ‘Year of Stability’ After a Turbulent 2025

After missing growth targets in 2025 due to economic uncertainty, restaurant franchise operators says they’re optimistic about the future.

By Jonathan Small | edited by Jessica Thomas | Dec 19, 2025

If 2025 was the year franchisees held their breath, 2026 is when they finally exhale.

The International Franchise Association predicted 20,000 franchise units would open in 2025, but IFA president Matt Haller told Nation’s Restaurant News the industry will fall short — though it’ll still outpace the broader economy. Multi-unit franchisee David Barr called 2026 the “year of stability,” expecting traffic to flatten as interest rates improve and tariffs settle. “I think franchising remains healthy,” he said.

The long-term outlook is bright. White-collar layoffs could bring new franchise owners with capital to invest, while chicken and beverage concepts keep attracting interest due to lower entry costs. The American Franchise Act may also bring stability by codifying joint employer regulations and reducing franchisor liability.

Read more

If 2025 was the year franchisees held their breath, 2026 is when they finally exhale.

The International Franchise Association predicted 20,000 franchise units would open in 2025, but IFA president Matt Haller told Nation’s Restaurant News the industry will fall short — though it’ll still outpace the broader economy. Multi-unit franchisee David Barr called 2026 the “year of stability,” expecting traffic to flatten as interest rates improve and tariffs settle. “I think franchising remains healthy,” he said.

The long-term outlook is bright. White-collar layoffs could bring new franchise owners with capital to invest, while chicken and beverage concepts keep attracting interest due to lower entry costs. The American Franchise Act may also bring stability by codifying joint employer regulations and reducing franchisor liability.

Read more

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Jonathan Small

Founder, Strike Fire Productions at Strike Fire Productions
Entrepreneur Staff
Jonathan Small is a bestselling author, journalist, producer, and podcast host. For 25 years, he has worked as a sought-after storyteller for top media companies such as The New York Times, Hearst, Entrepreneur, and Condé Nast. He has held executive roles at Glamour, Fitness, and Entrepreneur and regularly contributes to The New York Times, TV...

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